Data & Research
Investment Fraud & FINRA Arbitration Statistics
Current data on FINRA arbitration outcomes, investor losses, broker misconduct, and SEC whistleblower awards. Updated with the latest publicly available figures.
Sources: FINRA Annual Report 2023, FTC Consumer Sentinel Network, SEC Annual Whistleblower Report, FINRA Foundation, CFPB, True Link Financial. Statistics reflect the most recent year of data available and may be updated as new reports are published.
FINRA Arbitration Filings
New cases filed (2023)
6,084
Down from a pandemic-era peak but historically elevated
Cases decided at hearing
8%
Most cases settle before a full evidentiary hearing
Customer win rate at hearing
40–42%
2018–2023 average across all hearing outcomes
Settlement rate before hearing
~70%
Majority of cases resolve without a hearing
Median days to close (simplified)
192
Claims under $50,000 qualify for simplified arbitration
Median days to close (standard)
385
Claims above $50,000 go through the standard process
Investment Fraud & Investor Losses
Americans who report investment fraud annually
~3.5M
Source: FINRA Foundation National Financial Capability Study
Total investor losses to securities fraud (est.)
$40B+/yr
Includes unreported fraud; per FTC/SEC estimates
Median loss reported to FTC (investment fraud)
$7,000
FTC Consumer Sentinel Network 2023
SEC whistleblower awards issued since 2012
$2B+
Total awarded to whistleblowers through SEC program
Largest single SEC whistleblower award
$279M
Issued in 2023 — a single individual
Elder financial fraud losses (annual, est.)
$28B+
Reported and unreported — True Link Financial / CFPB estimates
FINRA Arbitration Awards
Cases awarding compensatory damages
43%
Of cases that went to hearing (2023)
Cases awarding punitive damages
6%
Punitive damages require egregious broker misconduct
Cases awarding attorney fees
11%
Awarded in cases involving statutory violations
Largest reported FINRA arbitration award
$20.5M
Compensatory damages in a churning/fraud case
Broker Fraud & Misconduct
FINRA disciplinary actions issued (2023)
736
Against individuals and firms
Fines levied by FINRA (2023)
$88.4M
Regulatory fines — separate from investor restitution
Restitution ordered to harmed investors (2023)
$7.3M
Via FINRA disciplinary proceedings
Brokers barred or suspended (2023)
430+
Permanent bars and multi-year suspensions
Churning cases filed annually (est.)
300–400
As a percentage of total FINRA customer dispute filings
Frequently Asked Questions
What percentage of investors win FINRA arbitration?
Approximately 40–42% of investors who take their case to a full evidentiary hearing receive some form of award. However, this statistic significantly understates success because roughly 70% of cases resolve before a hearing — typically through negotiated settlement. An experienced FINRA arbitration attorney can often secure a favorable settlement without a hearing.
How much can I recover in a FINRA arbitration claim?
Recovery depends on your actual losses (compensatory damages), whether interest is appropriate, and whether the broker's conduct justifies punitive damages. Awards range from tens of thousands to millions of dollars. The Frankowski Firm has obtained significant multi-million dollar recoveries in churning, fraud, and suitability cases.
How long does FINRA arbitration take?
Standard arbitration cases (claims over $50,000) typically close in 12–18 months. Simplified arbitration cases (under $50,000) are faster — often 6–9 months. Many cases settle before a hearing, sometimes within a few months of filing.
How much investment fraud goes unreported?
Substantially more than is captured in statistics. FINRA Foundation research found that a significant portion of victims never report losses due to embarrassment, believing nothing can be done, or lack of awareness of their legal options. This is why it is important to consult an attorney even if you believe your situation is unique or that recovery is impossible.
What is the statute of limitations for a FINRA claim?
FINRA's eligibility rule bars claims involving events more than six years old. Separate state law statutes of limitations may be shorter — often 2–4 years depending on the state and cause of action. Do not wait. Contact an attorney immediately to preserve your rights.
The Statistics Are Promising — But Only If You Act
FINRA has a six-year eligibility rule. Every day you wait narrows your options. The Frankowski Firm takes cases on contingency — you pay nothing unless we win.
Call 888-741-7503 — Free Consultation